An integral step in solidifying yourself as an established, successful entrepreneur is earning start-up funding for your fledgling company. While it may certainly be a daunting task, finding the best venture capital firm (VC) for your company is just as, if not more, important than finding start-up capital. Due to the high demand for venture capital and the competitive nature of the industry, firms are often inundated with business plans of companies seeking funding. Targeting the correct firms—given your company's investment stage, industry, and so on—will help you concentrate your time and efforts on viable VC companies. Although funding is your ultimate objective, the relationships and experiences you cultivate with your investors can prove to be invaluable. In fact, if you target venture capitalists with extensive industry experience, you'll likely find the relationships to be more rewarding than the capital. It is therefore essential to select the right VCs to approach, obtain a credible introduction, and be properly prepared for the VC meeting in order to succeed in the fundraising process. FindTheBest's comparison tool can help you research potential firms and ultimately find the right ones for your business. Consider the following factors when weighing your options:

• Location: You should first determine the geographic location where the venture capital fund tends to invest. Some firms will invest internationally, while others target companies in specific countries or regions. Just note that although there are many firms investing nationwide, venture capitalists like to be active in their companies and do not like to travel. Additionally, the closer the venture capitalist is to a company, the easier it is for him or her to add value and to monitor the investment, which will be especially advantageous for early-stage companies. It is therefore extremely beneficial to look for firms located close to your city.


• Investment Range: It is also imperative to consider the amount of capital you are looking to raise. Most VC firms have an upper and lower limit to the size of an investment, so don't go to investors asking for capital based on a blind guess. Know how you would use the funds and how they would benefit your company's value, as this will eventually increase the return for your investors. You will also need to be prepared to present extensive financial information and analytics in your pitch to justify the investment in the eyes of the investors. The onus falls on you to make a compelling argument for why your company deserves the funding and how it will benefit the VC firm in the long run.


• Investment Stage: An additional element to take into consideration is your company's current state of development. VC firms will often specify that they solely invest in start-ups or just in companies that need supplementary funding before an IPO, so only seek funding from groups that focus on your stage of growth. Some VC firms will invest conservatively in existing businesses with a proven track record, while others will provide generous funding for organizations that are ready to make a large growth effort. Firms that specialize in funding seed-stage companies tend to offer the most money since the returns and rewards are greater when a start-up actually succeeds; however, they are also the most prudent and selective about whom they back and what they fund since there is more risk involved.


• Industry Focus: Finally, you will need to identify the firms that cater to the industry in which your business is involved. If a venture capital firm has a stated investment preference in your industry, not only is it more likely to understand your opportunity, but it will also be in a position to add value to your company. Additionally, VC funds are usually controlled by investors with extensive industry experience and who are leaders at identifying strong innovative ideas and industry trends. This industry expertise is often acknowledged and respected by other VCs that may provide additional funding, so seek out a firm that has a declared investment preference within your industry.

Once you have identified a firm that you would like to contact, go to the organization's website and view the key personnel information. When available, contact the investment professionals you feel are most appropriate given their expertise and experiences (hint: you will have more luck targeting analysts than partners) and that stand the greatest chance of helping your business succeed.

Read the sections below for more information on how to use our venture capitalist firm comparison tool, or start your search now and find the best one for your company.